Transparency and strong relationships key to successful capacity partnerships
30 May 2025
Transparency and strong relationships are essential for successful capacity deals, according to industry experts speaking at the Program Manager Conference in New York. During the Tales from the Frontline fireside chat, panelists discussed the significance of maintaining valuable connections within the insurance sector.
John Horton, chief risk officer at CRC owned catastrophe-focused MGA AmRisc, emphasized the importance of ongoing communication, even with former partners.
"Even with the carriers that have left us, we still update them on how the market's going," Horton explained.
"It's like showing up with a new girlfriend to subtly remind them of what they're missing, but also to signal our willingness to restart things. We've already re-engages with one carrier that exited in 2023, and that's proving fruitful."
He stressed that preserving relationships is crucial, as former colleagues often move within the industry. "It's important not to burn any bridges; after all, it's just business, it's insurance, not life," he said.
John Fitzgerald, president of MSIG-owned hybrid fronting carrier MS Transverse, echoed Horton's sentiments.
"This conference exemplifies the importance of relationships. It's a tight-knit community, and everything we do across the cycle is relationship-oriented," he said.
"At MS Transverse, we're focused on bringing in talented individuals with strong industry connections. Leveraging these relationships benefits both us and our clients and partners."
Addressing what he perceives as some of the challenges in the market, Fitzgerald noted that historically, a lack of transparency in reinsurance and expense allocations led to the loss of high-quality MGA relationships.
However, he observed positive changes over time.
"I think as an industry, we've gotten much, much better at being transparent around the true economics associated with a program or with an MGA, and there's probably still room to improve," he said.
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